PALLADIUM COULD BE WEAKER THAN GOLD

It would have been a great trade to have bought palladium at $584 and have sold gold at $1710 in equal value back in October 2012 because the ratio palladium to gold doubled in that time. But what to do now? The daily chart of the ratio below shows that the long term uptrend is still intact but the short term uptrend has been reversed. Next visible support is at 0.600 ...the ratio's short term OB/OS indicator has dropped from 100 to 93.3 which allows scope for lower levels especially with the InvesTRAC forecaster pointing to a declining trend until July 30.